FME (FSA) assumes control of Glitnir Bank

Reykjavik 7  October,  2008 Glitnir  Bank  hereby confirms  that  the
Icelandic Financial Services Authority, Fjármálaeftirlitið (FME)  has
decided to take  over the powers  invested in Glitnir's  shareholders
meeting and Glitnir's  Board of  Directors. The FME  has appointed  a
receivership committee which  has assumed  the role of  the Board  of
Directors with immediate effect.
By law, the action  of appointing a  receivership committee will  not
have the effect of creating a default under any loan documents.
The receivership committee  has asked Lárus  Welding to continue  his
work as CEO of Glitnir Bank. He has accepted.
Glitnir Bank would like to stress that the bank has not been put into
liquidation but  is  in  receivership  which  gives  it  a  temporary
protection from payment of  debts and obligations  as they fall  due.
Work has  already begun  on the  restructuring of  the operations  of
Glitnir Bank.
The receivership committee  and Glitnir's  CEOs share  the view  that
operations over the next days will be performed in a manner as  close
to business as  usual with  a view  to protecting  Glitnir assets  in
Iceland and abroad.

Further information:
Bjørn Richard  Johansen, Head  of Global  Corporate Communication  in
Glitnir,
mobile +47- 47 800 100